Revenue, Customers, & Costs: How to Take on Your Top Challenge

As an entrepreneur, you're no stranger to business challenges, especially in our current situation. But Carol M., who owns Point of Touch Massage Therapy in Lincoln, NE, points out, "We can create our reality and expect to fail or press through the adversity and expect to succeed." 

So how are you pressing through your current challenges? 

To help you on your way, we asked our members what their biggest concerns were and how they're handling them. Whether you're dealing with upticks in demand, struggling with low revenue, or crunched by cost increases, here are some ways your peers are adjusting and how you can, too.

Simply pick the challenge you’re most struggling with, dig in, and add your own tips and ideas to the mix.

Your Top Business Challenges Right Now

First up: What challenges are causing you the biggest headaches now? Here's what you told us in our recent survey: 

• 58% percent of you have half or less of your monthly pre-COVID revenue.
• 49% say you have half or less of your pre-COVID customer counts. 
• Nearly 80% are concerned about rising costs. 

Now, let’s take a look at some business owners who are facing struggles in these three areas, how they’re adapting, and what else they might try to overcome them. 

The Challenge: Revenue isn’t climbing at the same rate as costs

The cost of supplies is becoming a big issue for many of you.

Joy G., a florist in Dover Foxcroft, ME, is finding that her profit isn’t rising as much as product and shipping prices are.

"Sustainability continues to be a challenge with significant increases in shipping costs and availability of product. Overhead continues to climb at a rate not commensurate with income,” she says. 

Overhead continues to climb at a rate not commensurate with income.

While Joy is concerned that she won’t be able to keep her doors open, she’s tried a number of different methods to offset costs and so have others in her industry. Here are a few of them.

5 ways to offset supply and shipping costs

Ask suppliers to match prices: Joy has worked with some shipping companies for 15-20 years and “has no problem asking and even demanding that they price match on charges that have gone from 22-45% on a $100 base.” 

Stockpile other supplies to reach free shipping minimums: “Some companies will absorb all shipping if the order is large enough ($750.00 plus), and if I have to stockpile on dispensables to meet the numbers, I do,” suggests Joy.

Keep quality standards high: Regardless of the supply and shipping cost increases, Joy continues to place her emphasis on quality so her customers will be satisfied with their products. 

For example, she sources her flowers from “farm direct production” and “spends hours tracking down the freshest varieties for my customers.” 

Use a wider range of suppliers: Helen Halloran of Concord Flower Shop in Concord, MA has found success with expanding the number of suppliers they use. “We are using more suppliers in order to maximize our ability to get perishables and hard goods.”

Split larger orders with other businesses: “We also use some of our wholesaler’s grower direct programs and due to the large quantities you have to buy, we share orders with another florist,” Helen says.

“It’s more work, but we are managing, along with increasing some of our prices, to remain profitable.”

Are you struggling with rising supply or shipping costs? What have you tried that’s worked? Jump to the comments to share your ideas. 

If you’re a florist who is experiencing similar challenges, join the conversation at the Florist Group to problem solve with members like you. 

The Challenge: Demand is up but supplies are scarce and costly

Some of you might be experiencing increases in demand that you’re struggling to meet because of supply scarcity and expense. This is the case for Jim L., owner of Langston Electric LLC in Paducah, KY.

“New home construction has been unbelievable,” he says. “My concerns are now with the cost and availability of products that we use. Not only have prices doubled, but I am told and have observed that we may not even be able to find the material we need.”

My concerns are now with the cost and availability of the products that we use.

As a result, Jim’s seen construction projects come to a complete halt, even after they’ve started. “That may happen more frequently until prices and availability of all materials get back to a normal level,” he says.

3 ways to deal with material shortages and cost hikes

Increase your prices to offset rising supply costs: Jim tries to absorb some of the cost increase himself, to avoid passing all of it along to his customers.

But he still has to boost prices to keep his business afloat. “I will have to increase the price I charge in order to maintain a profit and keep my employees,” he says.

Consider alternate materials: Due to material shortages, it might be time to think outside the box. For example, there’s a big lumber shortage causing certain kinds of wood to be both unavailable and expensive. 

So why not try something new that is easier to get you hands on and more affordable, suggests Levelset.

Get quotes for materials: It’s smart to know what your supply costs are ahead of time, so you can both plan for them and provide that information along to customers. If you get a quote for materials, you’ll have no surprises and neither will your customers.

Are you having a hard time sourcing materials for your business? What’s worked for you? Share your advice with others in the comments.

If you’re in the construction industry and want to talk about this and other problems specific to you, head over to the Construction Trades and Services Group.

The Challenge: Your customers aren’t coming back

Many of you have struggled with declining customer levels, which haven’t fully rebounded since Covid hit. 

Musu W., owner of Integrated Health Recreation and Musu Wellness LLC, says, “We are still struggling with acquiring customers.”

3 ways to bring back your customers and bring in new ones

Focus on marketing: “I am [putting in] extra effort in weekly advertising with incentives to regain my old customer base and attract new customers,” Musu says. 

While marketing has had an effect on her overall budget, she knows that it is “necessary and important to stay on the radar in order to save my business.”

Help your customers feel safe: Phil T., who owns a plumbing business, emphasizes safety. “Fear of the unknown alters people’s patterns, so removing or at least addressing the fear helps your customers feel safe,” he says. 

“Be very clear and detailed about all the steps you are taking to keep your customers, your staff, and your facility safe.” 

Keep your current customers happy: It’s often easier to get your current customers to come back than it is to find new ones—and less expensive too.

Without [your customers], your world goes away.

With that in mind, “Offer them value and extras, and be creative in other ways to make them feel like they mean the world to you,” Phil says. “Because without them, your world goes away.”

How have you kept your customer count high? Share your tips in the comments.

If you want to chat all things customer—acquisition, retention, relationships, and more—head over to the Perfecting Customer Service Group to problem solve with your peers.

Your turn: How have you solved your biggest business challenge?

These are just a few ways you can take on some of the most pressing challenges facing the small business community today. And they barely scratch the surface. So tell us and your peers: How have you solved challenges involving customers, revenue, or supply costs? 

Share your best ideas in the comments so you can help others make it through. 

And remember, you can find answers to your biggest concerns by joining a group of like-minded business owners. Ask for advice, share your best tips, and find support. After all, we’re #StrongerTogether.